Profit In 2020 Drops 89 Percent, Property Developer Owned By Conglomerate Eka Tjipta Widjaja This Does Not Divide Dividends

JAKARTA - Property development company PT Bumi Serpong Damai Tbk or BSD has decided not to distribute dividends for the 2020 financial year. This is due to the declining performance of the BSDE stock coded issuer last year.

Based on the 2020 annual financial report, the company owned by the conglomerate Eka Tjipta Widjaja posted revenues of IDR 6.18 trillion. This realization decreased by 12.76 percent compared to 2019 worth Rp. 6.18 trillion.

The decline in revenue also eroded the company's profit from the Sinar Mas Group by 89.90 percent to IDR 281.7 billion in 2020 compared to the previous profit in 2019 which was IDR 2.79 trillion.

"With the approval of shareholders not to distribute dividends, we allocate net profit for the 2020 financial year to strengthen capital in 2021," said Hermawan, Director of BSD, Hermawan Wijaya, in a written statement, quoted Friday, June 25.

Hermawan explained that BSD's revenue was contributed by the sales of land, buildings and strata title, rental income, construction, hotels, recreation arenas, building management and other income.

The segment with the highest contribution is the sales segment in the form of land and buildings as well as strata title land and buildings with a contribution of 80.20 percent. Total sales of this segment reached Rp 495 trillion throughout 2020.

The second largest sales segment came from rentals of 12.35 percent or Rp. 763.37 billion. Then the third largest business revenue ranking is building management with a contribution of 4.67 percent or Rp. 288.79 billion per year 2020.